What is the purpose of a performance dashboard? Facilitate Execution

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Neal Williams

Founder & Chief Strategist, Corda Technologies

Best Practices in Dashboard Design Session Outline

• Dashboard Theory (8:20 – 9:25)

-How can a dashboard improve the performance of your business?

-What are the different types of dashboards?

• The 9-Step Workshop (9:40 – 10:45) -Choosing the right KPIs -Keys to Successful Deployment

Best Practices in Dashboard Design

Your Business Performance Dashboard will end up being one of the following,

1) A visual reporting tool that does little to change organizational performance

2) A powerful tool that provides valuable insight and drives breakthrough performance

• How it’s Designed

• How it’s Deployed

• How it’s Maintained

• How Accountability and Responsibility are Handled

What Affects the Success of your Business Performance Dashboard

What is the purpose of a performance dashboard?

Facilitate Execution

Execution -

‘The gap between what a company’s leaders want to achieve and the ability of their organizations to deliver it’

- Larry Bossidy and Ram Charan, (2002) Execution: The Discipline of Getting things Done

‘Strategy is important, but it is execution that counts’

- Jeff Call, CEO & Founder of Focus & Execute

What is the main barrier to your company’s success?

How Does a Dashboard Facilitate Execution?

1. Valuable Insight 2. Organizational Alignment 3. Workforce Focus

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Visual is better…

Valuable Insight

“run” your business, without having to take your eye off of your business

Valuable Insight

If a Business Performance Dashboard is to be adopted by your organization it must be Easy to Use

Valuable Insight

Indicators Alerts

Valuable Insight Valuable Insight

“Intelligence is the most important work, because the entire force relies on it for every move. It is the essence of strategy.”

-Sun Tzu, the Art of War

Valuable Insight

Do you feel like you are guessing when it comes To making important decisions?

Can you make timely decisions, or do you delay because of uncertainty?

The inability to make timely and informed decisions is a barrier to execution.

Valuable Insight

Naked Eye Observations

Some things in your business are visible to the naked eye.

Other things are not.

Valuable Insight

As we measure and gather data,

• Things that were invisible become visible

• Cause and effect relationships become clear

• Old models and belief systems are proven false

• New models and belief systems are born

• Outliers become apparent

• Predictive indicators are revealed

Valuable Insight

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History illustrates how our understanding increases as we move beyond naked eye observations, and begin to measure.

Ancient astronomers using naked eye observations, developed a model of the universe

Valuable Insight

A new instrument is invented which allowed measurement of celestial movement--The Armillary Sphere

By taking measurements of planetary movements, Ptolemy developed a new model of the universe

Valuable Insight

A new model of the universe is born

Valuable Insight

A new instrument is invented which allowed even more precise measurements of celestial movement--The telescope

With this new device, Galileo developed a new model of the universe

Valuable Insight

A new model of the universe is born

Valuable Insight

With the new heliocentric model, Newton is able to finally explain mathematically how the universe operates with his

“Law of Gravitation” theory.

Valuable Insight

Using new and improved measuring techniques, astronomers discovered a peculiarity in the planet Mercury’s orbit that can’t be explained using Newton’s law of gravitation.

Albert Einstein comes up with a new model of the universe that explains Mercury’s orbit and replaces Newton’s model

Valuable Insight

Takeaways from this history lesson,

-The accepted model that has been around for a while may not be the correct model

- Accurately measuring something can lead to new revelations Real World Example – Comcast’s Maintenance Schedule

Valuable Insight

Type of insight,

- Discovery of predictors

Real World Example #2– Comcast’s Customer Record Transaction System

- Outliers become visible Real World Example #1– ASU’s Help Desk

Valuable Insight

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Lack of Alignment

Organizational Alignment

Alignment of magnetic particles in iron

Normal Iron Magnetized Iron

All iron contains magnetic particles. The only difference between normal iron, and magnetic iron is alignment.

Is Your Organization Aligned?

Keys to Organizational Alignment Organizational Alignment

Keys to Organizational Alignment

•Linked Goals (Trickle-Down Goals)

•Two-Way Communication

communicationcommunication communicationcommunicationcommunication

•Two-Way Communication

•Single Version of the Truth

communicationcommunication communicationcommunicationcommunication Real World Example – ASU’s

Research Grants

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Focused Effort OR Lack of Focus Workforce Focus

The Hawthorne Effect

• A change in the behavior of an individual or a group who know they are being observed to meet the expectations of the observer.

• The act of measuring in and of itself can increase performance.

Hawthorne Works (ca. 1924)

Workforce Focus

Real World Example – Ticket Handling Workforce Focus

Design your Performance Dashboard to provide,

There Are Two Types of KPIs 1. Outcome KPIs 2. Driver KPIs

Types of KPIs

There Are Two Types of KPIs 1. Outcome KPIs

• Quarterly Revenue

• Customer Satisfaction

• Monthly Help Desk Calls

2. Driver KPIs

• Sales Calls Quarterly Revenue

• Product Quality Customer Satisfaction

• Monthly Self Service Incidents Monthly Help Desk Calls

Types of KPIs

Beneath Outcome and Driver KPIs are Key Behaviors Outcome KPIs

Outcome KPIs

Driver KPIs Driver KPIs

Key Behaviors Key Behaviors

Types of KPIs

Beneath Outcome and Driver KPIs are Key Behaviors Outcome KPIs

Outcome KPIs

Driver KPIs Driver KPIs

Key Behaviors Key Behaviors Sustaining

Behaviors Sustaining Behaviors

Types of KPIs

Performance Dashboards fall into one of three categories 1) High-Level Strategic

2) Organizational Management 3) Real-Time Operational

Types of Performance Dashboards

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Purposes: Align entire company to strategy, monitor high-level performance objectives Examples: Balanced Scorecard Dashboard, Board of Director’s progress report Attributes: Long term scope, measures change infrequently, primarily utilizes outcome KPIs

2) Organizational Management 3) Real-Time Operational

2) Organizational Management

Purposes: Increase performance of an organization Examples: VP of Sales Dashboard

Attributes: Short term scope, measures change frequently, utilizes both outcome and driver KPIs

3) Real-Time Operational

2) Organizational Management

3) Real-Time Operational

Purposes: Optimize a process Examples: Help Desk Dashboard

Attributes: Real-time, or close to real-time, utilizes primarily driver KPIs

Contact Information

Neal Williams

Founder & Chief Strategist, Corda Technologies

[email protected]